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General TradingC
Contract
A contract in trading is a standardized agreement to buy or sell a specific quantity of an asset at a predetermined price and date. In futures and options markets, contracts specify the underlying asset, quantity, expiration date, and settlement terms.
Example
“Each E-mini S&P 500 futures contract represents $50 times the index value, so at an index level of 5,000, one contract controls $250,000 worth of exposure.”